Question 1

Part of the government's aim in offering assistance to business is to encourage innovation

Accepted Answer

One of the reasons why the government offers assistance to businesses is to foster innovation and promote economic growth.

Question 2

Regulation is aimed at correcting market failures and inequities that may arise for a variety of reasons, including the case where insufficient competition exists in an industry

Accepted Answer

Regulation is often used to address market failures, such as when there is inadequate competition in an industry. This can result in higher prices, lower quality products or services, and reduced innovation. By regulating the industry, the government can help promote competition and protect consumers.

Question 3

According to the Fraser Institute, there is a great deal of evidence showing that government assistance to business leads to widespread economic growth and job creation.

Accepted Answer

According to the Fraser Institute, in a free market, government assistance to businesses is likely to lead to economic inefficiencies, moral hazard, and rent-seeking. However, some may argue that certain types of government assistance, such as infrastructure investments, can have positive effects on economic growth and job creation.

Question 4

Assisting private business by way of bailouts and subsidies is an example of government as guardian of society

Accepted Answer

The answer of Assisting private business by way of bailouts...

Question 5

An example of a restrictive tax is the Harmonized sales tax (HST)

Accepted Answer

The Harmonized Sales Tax (HST) is not a restrictive tax; it is a value-added tax that combines the Canadian Goods and Services Tax (GST) with provincial sales taxes where applicable, designed to be paid by the end consumer.

Question 6

A major criticism of subsidies is that they create barriers and unfair competition

Accepted Answer

Subsidies can give one group of producers an advantage over their competitors, causing barriers and unfair competition. This can distort market prices and discourage innovation and efficiency.

Question 7

The highest level of government that governs all Canadian citizens, residents and others across Canada is the Ministry of Defence

Accepted Answer

The Ministry of Defence is not the highest level of government in Canada. The highest level of government is the federal government, headed by the Prime Minister and consisting of various departments, including the Department of National Defence.

Question 8

The government of Canada is organized into three levels of government: Federal, Provincial/Territorial and municipal

Accepted Answer

This statement is true. The federal government is responsible for issues that affect the whole country, while the provincial/territorial governments deal with issues that are more regional in nature, and municipal governments focus on issues that affect their specific communities.

Question 9

Government's role as business owner includes the necessity to protect industries that are deemed to be vital to the economy

Accepted Answer

It is true that government's role as business owner includes the necessity to protect industries that are deemed to be vital to the economy. This can involve implementing policies such as tariffs or subsidies to support domestic industries, and regulating mergers and acquisitions to prevent the concentration of market power in particular sectors. The goal is to promote economic growth and stability by maintaining a diverse and competitive business landscape.

Question 10

Imperfect competition occurs where there are many firms that produce an indistinguishable product or serve that no single producer has the power to affect the price of that product or service

Accepted Answer

Imperfect competition occurs when there are a few large firms in a market, and each firm has some degree of market power that enables them to affect the price of their product or service. This is in contrast to perfect competition, where there are many small firms that produce identical products and have no market power.

Deck 9: Section 5: The Leadership Challenge